- Sputnik International
World
Get the latest news from around the world, live coverage, off-beat stories, features and analysis.

Barnett Formula in Scotland’s Public Expenditure

Subscribe
Following a historic referendum in Scotland, which saw the majority of voters rejecting independence, Scotland's public spending will now be one of the focal points, as it should become clear whether the Barnett formula will continue to apply to the country's public expenditure.

MOSCOW, September 19 (RIA Novosti) - Following a historic referendum in Scotland, which saw the majority of voters rejecting independence, Scotland's public spending will now be one of the focal points, as it should become clear whether the Barnett formula will continue to apply to the country's public expenditure.

The Barnett formula is a system that determines the public spending of Scotland, Wales and Northern Ireland, named after former Labour Treasury secretary Joel Barnett who invented the mechanism in the 1970s.

The formula is calculated partly on the size of each nation's population and partly on the devolved powers each nation has. Some areas are almost fully devolved, namely education and health, while others are only partly so.

The formula has been a matter of controversy because it has led to public spending in Scotland being 20 percent higher per capita than in England. According to the standard note of the House of Commons from July 29, 2014, Scotland received 10,152 pounds per head in 2013, compared to 8,529 pounds per head in England and 8,788 pounds in the UK as a whole.

Earlier this week, UK Prime Minister David Cameron, his Deputy Nick Clegg and leader of the opposition Ed Miliband released a joint statement, called "The Vow", which promised to maintain the Barnett formula, should Scotland vote to stay within the UK at the independence referendum.

Controversy arose when the Dods Polling survey, published Thursday as Scots took to the polls, revealed that 63 percent of MPs across all parties wanted to change the way Scotland's public spending was determined.

It remains to be seen whether the UK party leaders will deliver their promise, following Thursday's No vote.

Newsfeed
0
To participate in the discussion
log in or register
loader
Chats
Заголовок открываемого материала